4-Day work week, 12-hour shift, less in-hand salary, high PF: How India's work culture may change in 2022

New Delhi, Dec 22: As we step in to the New Year 2022, the Narendra Modi government is likely to implement four new labour codes, that will change the in-hand salary of employees, working hours, and the number of weekdays.

According to a PTI report, four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented by the next fiscal year.

13 states have pre-published draft rules

Union Labour Minister Bhupender Yadav, in a written reply to Rajya Sabha said at least number of 13 states have pre-published the draft rules. The highest number of draft notifications have been pre-published on The Code on Wages by 24 states/UTs followed by The Industrial Relations Code (by 20 states) and The Code on Social Security (18) states.

What changes in the current code?

4-day workweek

Under the new rules, employees in India may be able to enjoy a four-day workweek, as opposed to the current five-day workweek from 2022-23. This means, an employee will have a 3-day holiday/week but there is catch. During this 4-day workweek, employees need to work for 12 hours to keep the weekly work hours in check.

The ministry has clarified that even if the new labour law comes into force, the 48-hour weekly work requirement has to be met.

Less in-hand salary, more money in PF

One of the significant move after the new labour code implementation is that there would be a reduction in the take-home pay of employees and hence there will be more money in PFs.

This will change the way an employee's basic pay and PF are calculated. Half of the salary would be basic wages and allowances would be restricted to 50 per cent, as per sources.

PF is a contribution that is made to the Provident Fund by both the employer and the employee. Currently, it is calculated based on the employee's basic pay and dearness allowance. Given that basic pay would be increased, more PF will be deducted, thereby bringing down the in-hand salary of the employee.

Which other countries have less than a 45-hour work week?

At least, 30 countries have a less than 45 hours work week, according to a 24/7 Wall Street Report.

Come January 2022, the United Arab Emirates (UAE) is set to change its existing five-day workweek to a four-and-a-half day starting January 1, becoming the world's first country to make the employee-friendly transition as part of its efforts to improve productivity and work-life balance.